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Safeguarding Digital Lending Through Robust Compliance Measure

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Safeguarding Digital Lending Through Robust Compliance Measure

The RBI has introduced new regulations to address malpractices in digital lending in India. The guidelines include the establishment of a unified regulatory framework for web-aggregation of loan products (WALP) across all regulated entities, ensuring fair practices, customer protection, and data transparency. Lending service providers will be brought under this framework to improve customer-centric lending services. Additionally, digital lenders must disclose the all-inclusive cost of loans upfront, and the Digital Personal Data Protection (DPDP) Act of 2023 mandates robust data protection and privacy measures. These measures aim to create a fair and secure digital lending space while maintaining consumer trust.

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